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Questions › DSE › DSE 2017 › Q1
2 marks, −0.666666666666667Microeconomics › Consumer preferences and utility › Perfect substitutes, complements and lexicographic preferencesModerateabout 3 min

DSE 2017 Question 1: Consumer preferences and utility

Person AAA lexicographically prefers good xxx to good yyy: comparing two bundles she strictly prefers the one with more xxx, and if two bundles have equal xxx she strictly prefers the one with more yyy. AAA's indifference curves in (x,y)(x,y)(x,y)-space are

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Person A lexicographically prefers good x to good y: comparing two bundles she strictly prefers the one with more x, and if two bundles have equal x she strictly prefers the one with more y. A 's indifference curves in (x,y) -space are (A) vertical lines (B) horizontal lines (C) diagonal lines (D) none of the above

Consumer preferences and utility has come up 93 times in 7 exams since 2007.

What this question tests

This question is on Perfect substitutes, complements and lexicographic preferences, part of Consumer preferences and utility in Microeconomics.

Preferences that give straight-line, L-shaped or dictionary-ordered indifference sets, and how they differ from standard ones.

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